a minute agoGerman industry cut 120,000 jobs
Periskopi(5 months ago)
(5 months ago)The German economy is in crisis, signs of recovery are weak. Especially hard hit is industry. Over 120,000 jobs were lost there last year alone. Experts fear other cuts in the economic crisis hit the German industry hard. As a result, the German industry has cut larger jobs last year. About [...]
The economic crisis hit the German industry hard. As a result, the German industry has cut larger jobs last year. Some 5.38 million people were employed in the sector approximately 124,000 less than a year ago.
This comes out of an analysis of the EY consulting firm, which the German News Agency quoted, DPA. The loss of jobs in industry was almost twice as high as 2024, according to the study, which is based on data from the Federal Bureau of Statistics and covers companies with at least 50 employees. Last year's worst hit was the struggling automobile industry. The sector cut some 50,000 jobs, while chemical and pharmaceutical industries had a relatively better performance with a loss of about 2,000 jobs in Germany, DW reports. Periscope.
The German “Industria is in a deep crisis”, Jan Brorilker, EY's manager, said. The future industries have contracted by almost five per cent since 2023. In this context, job losses are still moderate. But one thing is clear: “A real and important economic growth would be necessary to prevent further job losses. ”
More cuts expected during 2026
Three will likely continue in 2026. Experts at the consulting firm EY fear the industry will further reduce the workforce this year due to weak orders and strong competitive pressure. Adding to this is the growing number of bankruptcyes, especially among automobile suppliers, Brorilker says. Furthermore, car producers are expanding more and more production, research and development abroad ♫ “at the expense of jobs in Germany”.
Economists continue to remain sceptical. True, they expect the German economy to grow by about one percent in 2026, after years of stagnation. However, it will take time for this to translate into tangible results for businesses. Economists forecast a widespread increase in only 2027, when billions in government protection and infrastructure expenditures will have their full effect. German Institute for Economic Research head Marcel Fratzcher presents a grim view of the German economy if the German government does not undertake sweeping reforms. He argues that he simply lacks the workforce to achieve growth rates in the past. Fratzcher calls for tax hikes and a significant reduction in subsidies. /Periscope/
